3 Hot Millennial Home Buying Trends
The housing market on the rise and we don’t just mean home prices and interest rates. As the millennial generation takes charge of the workplace and starts earning that late 20s early 30s career money, real estate agents across the developed world are seeing millennial couples individuals looking to buy their very first home. There are a lot of millennial real estate trends to keep track of like the number of unmarried couples buying homes and building a life together or the fact that millennials are more likely to wait for children but buy homes so their pets can run around. However, compared to the big trends, these little personal details are small potatoes.
If you really want to follow the money, look at what the millennials are actually buying. While many of them are interested in the white picket fence suburban lifestyle, millennials are also getting stranger with their first time home buyer choices than any other previous generation. Among the latest bizarre (yet eerily understandable) set of choices made by the youngest adult generation are pint-sized homes, renting and buying at the same time, and buying with intent to survive an apocalypse.
One of the biggest crazes in millennial home buying is also something that is giving mortgage lenders fits as they try to adapt to the new world of Millennial-driven real estate. Tiny houses are homes that are built to minimalistic and often Escher-like specifications. They can be anywhere from 150 to 1,500 square feet depending on who you ask and many are built as portable trailer beds instead of on a foundation so that the owner can pick up and move without leaving their home behind.
Tiny houses are appealing both because many millennials are drawn toward minimalism and because they are affordable. With the amount of student debt hanging over most millennial heads, a tiny home just big enough for two and a cat seems like the perfect way to enter the real estate world without breaking the bank.
Another odd trend few old-hands saw coming was the rentvesting craze. Rentvesting occurs when a first time home buyer decides that they’d rather keep renting an apartment in town near their job and community but buy a nicer house in another location and rent it out. This allows a home buyer to enter the real estate market and start building equity, along with any rental profits, before they decide to change their existing lifestyle. Rentvesting is incredibly popular in Australia where there are few affordable homes in the packed cities but many rural communities several hours away and the trend is already catching on here in the states where millennials want to maintain their urban lifestyle and gain the value of owning a house out in the suburbs.
Finally, millennials are more concerned about the environment and the potential for imminent zombie/hurricane/nuclear/meteor/volcano apocalypse at any moment. While not exactly ‘preppers’ in the traditional sense, many millennials are more interested in getting a well and complete solar and wind power generation set up on a rural property and ready to self-sustain whenever necessary. Rather than being worried about the apocalypse, millennials just like to know that they would be ready just in case one of the ever-so-popular movie premises happens to come true. Plus, it’s good for the environment.
Many millennials absolutely want the suburban family dream, what would normally be considered ‘edge cases’ are unusually numerous. Millennials who want to live in tiny homes, rentvest, or build a completely self-sustaining homestead are changing the way that the real estate industry looks at selling first-time homes.
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